Canada Stocks Rise on U.S. Budget Talks and Wholesale Data Rally
Canadian stocks rose a second day as U.S. budget talks inched forward and wholesale sales rose more than expected in October, adding to evidence the economy may have accelerated in the fourth quarter.
Uranium One Inc. added 5.7 percent for a fourth day of gains after the pro-nuclear Liberal Democratic Party won a landslide election victory in Japan on Dec. 16. Toronto-Dominion Bank and Bank of Nova Scotia rose at least 0.6 percent as financial stocks contributed most to gains in the Standard & Poor’s/TSX Composite Index. (SPTSX) Alacer Gold Corp. and Eldorado Gold Corp. slipped at least 1.5 percent as the price of the metal declined for a second day.
The S&P/TSX rose 36.07 points, or 0.3 percent, to 12,370.41 at 9:52 a.m. in Toronto. The equity gauge has gained 3.5 percent this year.
Canadian wholesale sales rebounded in October from the biggest drop in almost two years, led by higher food and motor vehicle receipts. Other reports published this month have shown greater-than-forecast increases in employment and building permits.
The House may vote tomorrow on House Speaker John Boehner’s “Plan B,” which would raise tax rates on income over $1 million, rather than the $400,000 threshold the president proposed in his latest offer. The Obama administration and Democrats rejected the Boehner plan, released yesterday, as inadequate. Government leaders are negotiating to avoid more than $600 billion in automatic spending cuts and tax increases set to begin in the new year.
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